Strategic Flexibility and Business Success: The Mediating Role of Project Portfolio Management Effectiveness

Abstract

In uncertain and fast-evolving manufacturing environments, firms must transform strategic flexibility into actual business success but the "how" remains unclear. This conceptual study proposes and refines a model exploring how strategic flexibility drives business success directly and indirectly through Project Portfolio Management Effectiveness, while decision-making capability enhances Project Portfolio Management Effectiveness. Grounded in dynamic capabilities theory, the paper develops five hypotheses and outlines a methodology using Smart PLS and cross-sectional surveys to test the model. It identifies a pathway where flexible resource and coordination practices enable improved portfolio execution, which in turn enhances performance. Efficient decision-making strengthens this execution layer. The study provides a solid theoretical foundation for further empirical research.